Fitch Affirms Morgan Stanley Capital I Inc., Series 1999-RM1

NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms Morgan Stanley Capital I Inc., commercial mortgage pass-through certificates, series 1999-RM1, as follows:

--$43.1 million class A-2 at 'AAA';

--Interest-only class X at 'AAA';

--$43 million class B at 'AAA';

--$45.1 million class C at 'AAA';

--$12.9 million class D at 'AAA';

--$34.4 million class E at 'AAA';

--$17.2 million class F at 'AAA';

--$10.7 million class G at 'AAA';

--$23.6 million class H at 'AA-';

--$8.6 million class J at 'A';

--$12.9 million class K at 'BBB';

--$6.4 million class L at 'BBB-';

--$8.6 million class M at 'B+';

--$8.6 million class N at 'CCC'.

Fitch does not rate the $5.4 million class O certificates, and class A-1 has paid in full.

The classes are affirmed due to stable Fitch-expected credit enhancement levels since Fitch's last rating action. In addition, paydown of $164.8 million (19.2%) since the last Fitch review has been offset by a small uptick in the concentration of Fitch Loans of Concern (to 11.8% from 9.4%) as well as refinance risk corresponding to a high concentration of upcoming maturities in 2008 (70.5%).

As of the August 2008 distribution date, the pool has paid down 67.4% to $280.6 million, from $859.4 million at issuance. Fifteen loans (29.2%) have defeased, including four of the top 10 loans (15.2%).

Forty-nine loans, representing approximately 70.5% of the pool, are scheduled to mature throughout the remainder of 2008. Of these loans, 14 (28.4%) have defeased. For the non-defeased loans scheduled to mature in 2008, the weighted average coupon is 7.12%, the weighted average servicer-reported debt service coverage ratio (DSCR) is 1.72 times (x), and the weighted average occupancy is 85.6%.

Fitch has identified 11 loans (11.8%) as Fitch Loans of Concern. These include loans with DSCRs below 1.0x, loans with Fitch stressed loan-to-value ratios of greater than 100%, and loans with other performance issues. Of the Fitch Loans of Concern, five (5.8%) are scheduled to mature in 2008. Currently, no loans are in special servicing.

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